However, Asia-Pacific still accounted for a 46% share of global IPOs and 31% of global IPO proceeds in H1 2018, and five of the ten most active exchanges by deal numbers were from this region.
Overall, Q2 2018 saw sizeable gains in both volume and proceeds, increasing 75% and 202%, respectively, over Q1 2018. China’s Shanghai (SSE) exchange helped drive this by hosting Q2 2018’s largest IPO globally, coming second among exchanges by proceeds.
Japan’s IPO market has also continued to perform well in Q2 2018, with 21 IPOs raising $1.5b; $1.3b of this capital was generated by 11 technology IPOs in Q2 2018. This large increase in Q2 2018 meant that Japan finished H1 2018 with a 5% decline in volume but an 8% increase in proceeds compared with H1 2017.
“Strong macroeconomic fundamentals and investor appetite act as a counterbalance to the otherwise volatile performance of IPO activity across the region.” says Ringo Choi, my colleague at EY Asia-Pacific IPO. “Following the general declines in IPO performance in the first six months of 2018, largely resulting from recent interest rate increases, global political and economic uncertainties.”